Earnings need to be reinvested, continuing in an endless cycle.
"How are TV sales?" Hardy asked.
Michael's excitement dimmed a bit, "Not great. We're selling about ten units a day."
"Recently, I've focused mainly on sales. I asked customers, and many are interested in buying TVs, but the $127 price makes them hesitate. The war has just ended and people are short of money."
"Now we produce more and sell less, which puts a lot of pressure on the factory's funds. If this continues, there will be no funds to buy electronic raw materials in two months." Michael said with some embarrassment.
A TV cost $127.
Richard washed dishes in a restaurant, earning $120 a month.
Henry shoveled manure in a cattle barn, making $160 a month.
Matthew, who drove a big truck, made about $300 a month.
Life wasn't easy and Americans generally don't save money.
Spending a month's earnings on a TV was considered a luxury.
"How do you plan to solve the sales problem?" Hardy asked.
"Advertising to increase interest, running promotions, and lowering prices to attract buyers," Michael suggested.
These were common strategies for sales.
"Do you have any ideas, Hardy?" Michael asked.
Hardy thought for a moment, "I don't have a better idea yet. Let me think about it. Maybe I'll have something tomorrow."
Michael smiled after hearing this.
...
The next day. Michael took Hardy to the TV factory. The factory was in full production. The TVs were housed in wooden cabinets, making each TV a standalone piece of furniture.
Turning on the TV to receive programs, the clarity was slightly distorted. To Hardy, who had seen future LCD TVs, the picture quality was dismal, but the staff assured him that this TV had the best picture quality on the market.
Alright, What more could you expect?
Hardy visited the godfather's estate at noon. It was the second time Hardy met the old godfather. The old godfather looked at Hardy and warmly embraced him.
Hardy presented his gift.
Everyone looked at Hardy's gift, an Italian landscape painting. The old godfather exclaimed, "This is St. Mark's Square. I visited there when I was young. It's exactly as I remember."
"Do you like the painting?"
"Of course, thank you, child, for bringing back memories."
Everyone sat down to eat. The old godfather looked at his youngest son and asked about the current business. Michael took a bite of roasted meat and said, "Production is on track, but we still have some issues with sales that I'm working on resolving."
The old godfather turned to Hardy and asked, "Hardy, as a partner, what do you think about the sales?"
Hardy thought for a moment and said, "I discussed this with Michael yesterday. He mentioned increasing advertising and promotions, which are good strategies. However, I have an idea that I haven't had a chance to discuss with Michael yet."
The old godfather looked at Hardy attentively.
Hardy organized his thoughts and said, "Michael's market research indicated that many people want to buy a TV, but paying the full amount upfront is difficult. Instead of offering discounts, we could consider installment sales."
"Discounts not only reduce our profit but also lower the brand value. With installment sales, we can partner with a bank. The sales price remains $127, and buyers can purchase TVs with interest free loans, with us covering the interest. I calculated that this would cost us less than offering discounts."
"Tell me about the specific details?" Michael put down his fork and asked anxiously.
"The idea is to have consumers make a down payment, say 30%, which is $38. The remaining amount would be paid off in nine installments of $10 each."
"I believe many people could afford the down payment rather than coming up with $127 all at once. Additionally, we could introduce a special offer for war veterans: zero down payment and interest free loans, to be paid off in 12 installments."
"There are so many bank branches in major cities, and they can all be called our partners. I believe that this sales model will have greater sales than in the mall."
Michael thought carefully about Hardy's words and found that this suggestion was very feasible.
"But what if someone defaults? If the debt can't be recovered, we'd incur significant losses," Michael said.
Hardy smiled, "Defaults would be rare since the bank would screen applicants. Only those with stable jobs would get loans, ensuring most could repay. Even if we incur some losses, our increased profits would more than cover them."
"I think Hardy's suggestion is excellent and worth trying. Hardy indeed has a knack for business," the old godfather said.
The meal was enjoyable and harmonious.
Hardy once again strengthened his relationship with the Corleone family and earned the old godfather's approval.
...
New York's weather was sunny today.
The film crew was busy shooting.
Today was a big scene. Matilda returned from buying food, and she was happy that she wouldn't be hungry with this food. But as she entered the apartment building, she smelled blood.
When she arrived at her apartment, she saw the door ajar and a body lying in the living room. She didn't see the face, but she recognized the shoes as her brother's.
Her brother was dead, and her parents and sister were likely also killed.
She felt a chill all over.
At that moment, she took a glance inside the room. Terrified, she hurriedly walked forward with her grocery bag.
The corrupt cop emerged from the room, gun in hand, aiming at Matilda's back.
Matilda reached Leon's door and rang the bell, her face showing pain, sadness, and fear. She whispered, "Please, please open the door."
"Cut!" the director shouted. "That was excellent. This take is done."
Since the start of filming, Taylor has consistently surprised Hitchcock with her grasp of Matilda's character, exceeding his expectations.
As Taylor turned around, she suddenly saw a familiar figure.
"Ah, Mr. Hardy!"
She immediately got excited, ran over to Hardy, and jumped into his arms. Hardy quickly caught her.
Taylor hugged Hardy tightly.
Director Hitchcock and the producer saw this and laughed.
That evening, when the problem was resolved, they initially thought Meyer had called someone to fix it. But then they received a call from Meyer, informing them that Hardy had resolved the issue in New York, making Hitchcock and the producer aware of Hardy's influence.
When Hardy arrived, they welcomed him with smiles.
In the evening, the crew took a break.
Hardy took Taylor to a French restaurant in New York for dinner.
While eating, Taylor looked at Hardy and asked softly, "Mr. Hardy, I heard a rumor on the set. They say the explosion was caused by gangsters trying to extort money from the crew."
"I also heard that you, Mr. Hardy, resolved the issue when Mr. Meyer couldn't."
There are also rumors that Mr. Hardy has a relationship with the Mafia. They all say that you are a very powerful person. Mr. Hardy, what does the Mafia look like?"
Taylor looked at Hardy with curiosity and asked.
Hehehe~~!
Hardy couldn't help but laugh.